To improve is to change; to be perfect, change often.
Winston Churchill
Prime Minister Churchill offers sound advice with his quotation, although some companies in the manufacturing space may say “easier said than done” when it comes to making changes, particularly when the changes involve automation.
Change is both good and necessary, but companies may resist “changing with the times” for a few reasons:
Cost
Implementing automation requires a significant upfront investment in technology, equipment, and infrastructure. This can pose a major barrier for smaller companies or those with limited capital resources.
Training
There is fear that introducing automation often means retraining or even displacing existing workers. In turn, this could spark concerns about job loss, morale, and the need for new skill sets. Transitioning to automation can be seen as a risky endeavor.
ROI
There may be questions about the return on investment, the reliability of new technologies, and potential disruptions to production. Many small and medium sized companies may have a longstanding culture or tradition which values manual processes or craftsmanship. This can result in resistance from employees accustomed to the old way of doing things.
Customization and flexibility concerns
Some manufacturing processes require a level of customization or flexibility that automation may struggle to achieve. This is especially true in industries where products have unique specifications. Some companies in industries which follow strict regulatory requirements may be hesitant to adopt new technologies, as these changes may require extensive validation and compliance efforts. Many companies may lack the internal expertise or knowledge to effectively implement and manage automation technologies. Or they may have older facilities with legacy system snot easily compatible with modern automation technologies. These can lead to concerns about the complexity of integrating, replacing, or retrofitting these systems which can be expensive and time-consuming.
Companies which are doing well without automation
Conversely, a company which is meeting market demand and staying competitive without automation may see little incentive to invest in new technology. At the same time, leaders of these companies may also fear obsolescence and the rapid advancements in technology which can prevent or prolong projects in automation that may become outdated or surpassed by newer innovations in the near future.
The 2023 MHI Annual Industry Report states that for the past five years actual implementation levels for the technologies including robotics have been consistently lower than planned. A survey of over 2,000 supply chain professionals from around the world cites “lack of adequate talent to effectively implement and utilize the technology” as a major reason.
Where we see this all heading: the trend toward automation will continue
Say the word “automation” and you can expect some hesitation and resistance. But this is the wave of the future for the manufacturing industry. Your team can prove to be both a benefit and a barrier where implementation of new technology is concerned. It requires talent and manpower to get new technology up and running, but once buy-in is achieved by your team and the new system is implemented, it will free workers to focus on higher value tasks that automation can’t do.
Even with the hesitancy expressed by some about these changes, many companies are seeing the benefits: increased efficiency, improved quality, and enhanced competitiveness. Over time, as technology advances and the benefits become even more apparent, we should see a continued shift towards automated manufacturing processes.
Getting from “here” to “there”
As the leader of a company, you must play a key role in bringing about these changes, which will be more successful with your team’s buy-in.
Strong leadership at the top and throughout the organization will help facilitate change. Team members can help boost awareness of the importance of automation by talking up its benefits to the “resisters” in the company — their colleagues who are hesitant to adopt change. For an innovation to be meaningful or long-lasting, it will require clear commitment from the highest levels of the organization. Far too many organizations make promises about innovation and technology but fall flat on execution. Every business leader must realize the importance of converting those who resist change to becoming “change champions.”
Establishing clear, bold, and inspiring organizational goals will send a strong message to all of key groups (employees, suppliers, customers, and all stakeholders) that innovation, technology and especially your people are your top priorities.
Upskilling and re-skilling: how to learn new skills and knowledge for the change
A 2021 World Economic Forum report warned that over half of all employees worldwide will need to” reskill” or “upskill” by 2025. Companies can meet this challenge by adopting technologies to help their people and teams become the best possible versions of themselves.
They will also want to be able to measure the success of their technology investments in terms of human outcomes as well as cost and ROI. Companies which invest in their employees have a much better chance of attracting and retaining the talent they need.
A Gallup report reveals that almost 90% of millennials, currently the largest worker segment in the United States, greatly value opportunities for professional development and career growth. When companies invest in employee development and growth their people have less reason to seek new opportunities, which can prevent future workforce disruptions and help insulate the business from unexpected crises such as the global pandemic. Additionally, making skill development an integral part of the corporate strategy helps companies create a flexible workforce capable. of quickly adapting to future needs and continuously improving.
Automation and technology builds proficiency
Technology can help today’s companies redesign jobs and augment workers’ capabilities, making work better for humans and also making humans better for work! According to l Deloitte’s 2023 Global Human Capital Trends survey, 93% of companies recognize the importance of using technology to improve work outcomes and team performance. However, only 22% believe their organizations are very ready to do so. You’ll know you are making progress when workplace technology improves teamwork and helps teams stay connected, and if workers are improving their personal capabilities and have more time to focus on high-value tasks.
Sustain the change
The biggest challenges faced by supply chains pertain to workforce and talent. A supply chain is only as effective as the individuals overseeing it. For sustained success, prioritize investments in your existing and new workforce, and implement initiatives that will attract, nurture and foster a culture that retains employees. Automation and digital technologies are the critical elements for the future; they will alleviate the burden on your workforce and counteract persistent labor-related challenges.
Competitive advantage will depend on your people, your ability to implement technologies and foster supplier collaborations that will result in more transparent, sustainable and responsible supplyChains.
John Paxton, CEO of MHI
What will your facility look like and how will it operate in 2025? 2030? 2040? Be ready – and open – to the changes that will help get you from “here” to “there.”
At Cherry’s Industrial Equipment we are here to answer your questions about equipment design and automation to best serve your warehouse operation. If you have questions and would like to discuss in more detail, please contact Cherry’s Industrial Equipment at 224-268-8947 or email [email protected]. We’re here to help!
Cherry’s Industrial Equipment strives to positively impact the lives of everyday people, by engineered pallet handling solutions to improve safety and efficiency and to help achieve your goals, browse our selection of pallet inversion systems online to see what we offer, or reach out to discuss a custom solution. To request a quote or get more information, feel free to call us at 224-268-8947 or submit our online contact form. We’ll answer any questions you may have and suggest the best solutions for your facility.
